Finance Division Courses

Finance Division Courses

Undergraduate

1

FIN2520 - PERSONAL FINANCE

PERSONAL FINANCE

FIN2520 Personal Finance
4 credit - general credit
This course teaches students to negotiate the retail financial landscape, emphasizing issues that have a large impact on their future financial well-being. It assumes no financial knowledge other than first-year finance. The course covers topics such as understanding and appreciating the time value of money, the financial planning process, financing the purchase of a house and other consumer loans, saving for retirement and other goals, selecting a financial advisor, taxes, estate planning, behavioral finance and common investment scams. Specific investment products studied include mutual funds, exchange-traded funds, municipal bonds, alternative investments (including hedge funds, private equity funds, and commodities), annuities, and insurance products. Consideration will be given to the problem of an entrepreneur or start-up employee who has a substantial fraction of personal wealth invested in a single business venture, including evaluating stock-and option-based compensation plans. Over the duration of the course, students will work to develop a personal financial plan.
Prereqjuisite: SME2021

4.00 credits

FIN3515 - CORPORATE FINANCIAL MANAGEMENT

CORPORATE FINANCIAL MANAGEMENT

FIN3515
Corporate Financial Management
(General Elective)
This course is designed for students interested in corporate financial management. Its principal goals are to provide the concepts and techniques required to make long-term investment and financing decisions within the firm. At the end of the course, students will be able to make real asset investment decisions by valuing a proposed investment project or acquisition. Students will also be able to qualitatively and quantitatively assess the appropriateness of a firm's financing policy. Topics covered include alternative valuation methods, estimating cost of capital, real options, capital structure, and corporate payout policy. Recommended: ACC3502
Prerequisite: SME2021

4.00 credits

FIN3520 - SECURITY VALUATION

SECURITY VALUATION

FIN3520
Security Valuation
(General Elective)
This course is designed for students interested in investment banking, fixed-income valuation or equity analysis. Students develop tools and techniques for the valuation of different securities. Topics covered include: bond pricing, bond duration, the term-structure of interest rates, financial statement analysis, equity valuation models, and firm valuation. A major focus of this class is the valuation of specific firms and securities using finance theory and applications. Recommended: ACC3502
Prerequisite: SME2021 and SME2031 and SME2011

4.00 credits

FIN3522 - BEHAVIORAL FINANCE

BEHAVIORAL FINANCE

FIN3522 Behavioral Finance: Efficient Markets Meet Human Behavior
2 credit (general credit)
For many decades, finance theory and practice has relied on two ideas: individuals are rational and markets are efficient, in spite of events and actions that did not seem rational or efficient. In this course we will examine how individuals and firms make financial decisions, and how those decisions may deviate from those predicted by traditional financial theory. We will explore psychological biases in financial decision making, and examine the impacts these biases have on financial markets and financial decision making. In addition, we will examine how the insights from behavioral finance complement the traditional finance paradigm of efficient markets populated by rational participants.
This course counts as 2 credits towards the 16 credit minimum for the finance concentration requirement.
Prerequisite: SME2021

2.00 credits

FIN3535 - FINANCING AND VALUING SUSTAINABILITY

FINANCING AND VALUING SUSTAINABILITY

FIN3535 Financing and Valuing Sustainability
4 general credits
This course will examine the intersection of sustainability, corporate social responsibility and socially responsible investing with the traditional theories and tools of finance. Students will learn to describe the sustainability landscape and then analyze sustainable technologies, strategies, and business models from the perspective of managers, entrepreneurs, and investors. Basic financial tools such as discounted cash flow, capital budgeting, capital structure, and risk/return will be used to evaluate the feasibility and financial implications of sustainable products and practices in a variety of industries and applications. Students will learn how to balance the needs of all stakeholders in organizations to create both financial and social value.
Prerequisites: SME2021 Finance

4.00 credits

FIN3555 - REAL ESTATE INVESTMENT

REAL ESTATE INVESTMENT

FIN3555
Real Estate Investment
(General Elective)
This course is designed for students interested in learning to evaluate real estate investment opportunities. The focus is on commercial property, not single-family homes, and on U.S. real estate. Using readings and case studies, students examine real estate as an asset class and explore its similarities and differences from other investment types.The foundation for this course involves understanding the industry terminology, legal rights and restrictions, and basic techiques for financial projections and analysis.
Expanding from this base, students explore the use of debt and the implications of taxes on real estate investment returns.
Prerequisite: SME2021 and SME2031 and SME2011

4.00 credits

FIN3560 - FINANCIAL MARKETS AND INSTRUMENTS

FINANCIAL MARKETS AND INSTRUMENTS

FIN3560
Financial Markets and Instruments
(General Elective)
This course provides the student an understanding of the role the financial markets can play in managing the firm. The topics covered include the major financial markets and their associated structures, quantitative techniques for valuing various financial securities and their cash flow streams, and factors affecting interest rates. This course also provides an introduction to derivatives and risk management. Topics include: instruments/markets, issuing securities, organized exchanges vs. OTC, stock valuation, bond valuation, cost of equity capital, interest rate determination (term structure), risk management, an introduction to derivatives, pay off profiles, binomial option pricing techniques, and an introduction to Black-Scholes.
FIN3560 is a prerequisite to many advanced finance elective courses. This is also a good course for students who do not intend to pursue Finance as a specialization but want to supplement their SME coursework with additional Finance.
Prerequisite: SME2011 and SME2021 and SME2031

4.00 credits

FIN3565 - REAL ESTATE DEVELOPMENT

REAL ESTATE DEVELOPMENT

FIN3565
Real Estate Development
(General Credit)
This course reviews the process by which value is created through real property improvement and modification. The course examines that real estate development process, exposing students to the critical steps and key decisions required to create, secure approvals, construct, lease, finance, and manage property improvements. Through case studies, related readings, and a final team project, students examine the perceived risks and potential returns of real estate development.
Prerequisite: FIN3555
This course is typically offered in the following semester: Fall

4.00 credits

FIN4505 - FINANCIAL TRADING STRAT AND RISK MGT

FINANCIAL TRADING STRAT AND RISK MGT

In this course, students will learn to develop and implement strategies to make effective trading and investment decisions in an uncertain environment. Students will build quantitative models that identify, quantify, and manage the risks and expected return associated with these strategies. The course is based on an experiential learning approach, in which trading simulation software provides a platform for delivering learning-by-doing cases. Specific cases covered in the course include alternative trading venues, algorithmic trading, value-at-risk, crude oil and natural gas futures, portfolio insurance, and trading volatility. The course will also cover the fundamental concepts of market microstructure, including bid-ask spreads, price discovery, information asymmetry, liquidity, and inventory risk.

4.00 credits

FIN4510 - CORPORATE FINANCIAL MODELING&DECIS TOOLS

CORPORATE FINANCIAL MODELING&DECIS TOOLS

FIN4510
Corporate Finance Modeling and Decision Tools
(General Credit)
This course is designed to provide a practical application of corporate finance skills to a variety of analyses commonly performed by investment bank and commercial bank financial analysts. Mergers and acquisitions, initial public offerings, private equity placements, senior and mezzanine debt issuances, leveraged buyouts, and other common financial transactions will be covered. We will explore the process of each transaction and place heavy emphasis on the role of the financial analyst in analyzing each situation. Students will gather source data, and build and apply models typically used in practice by investment banks, commercial banks, and corporate finance consultants. The course is designed for those interested in careers in investment banking, commercial banking, corporate finance consulting, and strategic planning.
Prerequisite: SME2021 and any 3000 level Finance Course.
This course is typically offered in the following semester: Fall

4.00 credits

FIN4520 - BABSON COLLEGE FUND I

BABSON COLLEGE FUND I

FIN4520
Babson College Fund 1
(General Credit)
The Babson College Fund is a student managed portion of the Babson College endowment. The Trustees of the Babson College Fund select undergraduate and graduate students to be portfolio managers. Undergraduate students may apply to be portfolio managers in the spring of their junior year. If selected, students may receive up to six credits for this activity.
Further information and applications can be obtained from Professor Rick Spillane (Babson College Fund Office).
Prerequisite: SME2021 and Instructor Permission
This course is typically offered in Fall and Spring.

4.00 credits

FIN4521 - BABSON COLLEGE FUND II

BABSON COLLEGE FUND II

FIN4521
Babson College Fund II
(General Elective)
The Babson College Fund is a student managed portion of the Babson College endowment. The Trustees of the Babson College Fund select undergraduate and graduate students to be portfolio managers. Undergraduate students may apply to be portfolio managers in the spring of their junior year. If selected, students may receive up to six credits for this activity.
Prerequisite: MCE and instructor Permission
Further information and applications can be obtained from Professor Rick Spillane (Babson College Fund Office).

4.00 credits

FIN4530 - INVESTMENTS

INVESTMENTS

FIN4530
Investments
(General Credit)
This course is designed for students interested in investment or portfolio management. Students explore the simultaneous management of multiple securities, using statistical and other mathematical tools. Topics covered include: risk and return, allocation of risky assets, setting portfolio objectives and strategy, portfolio optimization, risk crafting, and portfolio performance evaluation. Through case studies, investment tools, projects, and readings, students will explore investment and portfolio theory and practice.
Prerequisites: SME2021 and any 3000 level Finance course.
This course is typically offered in the Fall.

4.00 credits

FIN4535 - FIXED INCOME AND STRUCTURED PRODUCTS

FIXED INCOME AND STRUCTURED PRODUCTS

FIN4535
Fixed Income and Structured Products
General Credit
This advanced quantitative course is designed for students interested in the sales and trading of fixed income securities and their related structured products, as well as students interested in fixed income portfolio management. Topics covered include: (i) bond pricing and day count conventions; (ii) relative value and yield curve construction; (iii) duration, basis point value, and convexity; (iv) pricing and hedging of interest rate / currency swaps; (v) Treasury bond futures, conversion factors, and the concepts of cheapest-to-deliver and implied repo; (vi) the repo (GC and special) market; (vii) credit risk and the pricing of high yield bonds and credit default swaps; and (viii) securitization, mortgage-backed securities, and collateralized mortgage obligations. Course enrollment will be limited to enable extensive in-class usage of Bloomberg and other Cutler Center resources. During the course, students will be required to obtain the Bloomberg Essentials (Fixed Income) certification.
Prerequisites: SME2031 and SME2021 and SME2011 and any 3000 level finance class.

4.00 credits

FIN4540 - CORPORATE FINANCIAL STRATEGY

CORPORATE FINANCIAL STRATEGY

FIN4540
Corporate Financial Strategy
(General Elective)
With the quickening rate of technological, demographic, institutional, and political change and globalization, managers, consultants, and investment bankers face increasingly turbulent and complex business environments. This course investigates the use of financial instruments and strategies to achieve a sustainable competitive advantage and create value. The course explores the relationships among corporate strategy, corporate finance, and financial innovation, and should be of interest to managers who aspire to use financial strategy and tools to support their strategic choices and to those who will be advising corporations on how to achieve their financial goals. Recommended: ACC3502
Prerequisite: SME2021 and any 3000 Finance course and senior status

4.00 credits

FIN4560 - OPTIONS & FUTURES

OPTIONS & FUTURES

FIN4560
Options and Futures
(General Credit)
This course is an introduction to options, futures, and other derivative securities. We examine the nature of the instruments, the theory of how they are priced, and strategies in which they areused. Cases address applications in both investment management and corporate finance, covering such topics as risk management, financial engineering, speculation, and arbitrage.
Recommended: ACC3502.
Prerequisites: SME2021 and any 3000 level Finance course and senior status
This course is typically offered in the Fall.

4.00 credits

FIN4570 - GLOBAL FINANCIAL MANAGEMENT

GLOBAL FINANCIAL MANAGEMENT

FIN 4570 Global Financial Management
(General Elective)
The central theme of this course is how to manage the finances of a multinational firm. It devotes attention to managing the short-term finances of a multinational, including topics like centralizing cash management, netting, and transfer pricing. It then deals with long-term financial management of the multinational. That section includes capital budgeting in the multinational context, capital structure decisions, and also studies how a multinational can sometimes have a lower cost of capital than a single-country firm of the same size. The third major theme is how the multinational can optimize its relationship with the capital markets, including the national stock markets where its subsidiaries operate. This section includes a discussion of the opportunities created for multinational companies by international portfolio investment. If time permits there will be a section on how to operate in countries with inconvertible or hyperinflationary currencies. The course deals with the international financial environment, meaning topics such as exchange rates, balance of payments, and cross-border capital flows, only to the extent necessary to put the financial decisions for firms operating in more than one currency into proper context.
Prerequisites: SME2021 and any 3000 level Finance course

4.00 credits

MFE3534 - MCFE: RED SOX

MCFE: RED SOX

MFE3534
Management Consulting Field Experience
(General Credit)
The Management Consulting Field Experience (MCFE) course provides an excellent opportunity for students to apply principles that they learn in the classroom to real-world consulting projects. The students gain practical experience by solving actual business situations. Students also develop key skills in negotiation, group dynamics, organization, and planning. Previous projects include financial advisory, corporate finance, investment management, marketing, data analytics, and business strategy. Teams of three to five undergraduate students work as a consulting group for a sponsor company. The students meet with the managers of the company, analyze the problem, and explore possible solutions. The project concludes with a formal report and a presentation to the sponsor company comprising the group's recommendations.
Prerequisite: SME and Permission of Experiential Learning Programs Associate Director

4.00 credits

SME2021 - PRINCIPLES OF FINANCE

PRINCIPLES OF FINANCE

SME2012 SME: Finance
3 credit intermediate management
SME finance is designed to develop student understanding of the role of finance in the management of a business venture. Effective financial management, whether performed by the general manager in a small business, or by the finance organization in a large corporation, is necessary if a venture is to succeed and grow. A successful financial manager must have skills, abilities, tools, and a theoretical understanding in many areas, including valuation, financial forecasting, capital budgeting, investor expectations regarding risk and return, the cost of investor supplied capital, and financial strategy. Student skills will be developed in all of these areas in the SME finance stream through readings, lectures, class discussions, exercises, and an analytical project. A successful financial manager must also understand the venture’s economic environment, its products, services, and market position, its operational capabilities, and its organizational behavior characteristics. The SME finance stream will link financial management analysis and decisions to these other critical functional areas, so the student will understand its part in achieving overall success for the venture.
Prerequisite: ACC1000 or ACC1300